While the issue of corporate social responsibility has been studied in the social sciences for many years, it has become more critical as financial markets' influence on companies has grown. Pressure on corporations to increase shareholder value seems to leave no room for firms to make decisions that do not lead directly to profit maximization. The working paper deals with three aspects of the question Are companies socially responsible?: Do companies make socially responsible decisions? Under what conditions can companies act in a socially responsible way? Should companies make socially responsible decisions? The paper refutes the notion that institutionalizing voluntary corporate social responsibility will induce companies to make decisions that are socially desirable.